Calculate the number of units that must be sold in order to realize an operating income of $180,000 when fixed costs are $520,000 and the unit contribution margin is $28. a. 24,000 units b. 25,000 units c. 25,714 units d. 26,429 units

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2BE: Contribution margin Waite Company sells 250,000 units at 120 per unit. Variable costs are 78 per...
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Calculate the number of units that must
be sold in order to realize an operating
income of $180,000 when fixed costs are
$520,000 and the unit contribution
margin is $28.
a. 24,000 units
b. 25,000 units
c. 25,714 units
d. 26,429 units
Transcribed Image Text:Calculate the number of units that must be sold in order to realize an operating income of $180,000 when fixed costs are $520,000 and the unit contribution margin is $28. a. 24,000 units b. 25,000 units c. 25,714 units d. 26,429 units
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